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What will happen to return on investment (roi) if selling and administrative expenses decrease while everything else remains the same?
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What will happen to return on investment (roi) if selling and administrative expenses decrease while everything else remains the same?

User Jimmie Johansson
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1 Answer

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ROI = Operating income / Total Assets

It is obvious that ROI is inversely proportional to the total assets at constant income.

Therefore, if selling and administrative expenses decrease while everything else remains the same, the ROI will increase.
User Robin Summerhill
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